The market closed at another high on Friday, Oct. 3, fueled by heavy investments in artificial intelligence and despite ongoing government uncertainties.
- Reporting fresh highs, the S&P 500 closed the quarter 7% higher.
- The tech-heavy Nasdaq Composite was significantly up, reporting a 10.6% gain this quarter but a 0.3% loss at closing on Friday.
- The Dow Jones Industrial Average showed a modest 4.3% gain this quarter.
- The small-cap Russell 2000 closed at a record high on Friday and was up 10% this quarter.
The government shutdown entered its third day, delaying the release of the official nonfarm payroll report, a critical gauge for the Federal Reserve’s interest rate decisions. Private data signaled a cooling labor market, with slower hiring and reduced layoffs, reinforcing expectations of further rate cuts.
Despite the shutdown, markets remained resilient this week. Historical data suggests that such a shutdown rarely weighs on stocks, and optimism around AI-driven productivity continues to rise.
Amazon (AMZN) founder Jeff Bezos referred to the AI boom as an “industrial bubble” at the 2025 Italian Tech Week, while explaining that the AI boom is real and will increase productivity for every company worldwide.
Bezos further explained that this was similar to the biotech bubble in the 1990s, which led to some life-changing drugs, and unlike the financial bubble of 2008, which triggered a banking crisis.
The industrial ones are not nearly as bad. It could even be good because when the dust settles and you see who are the winners, society benefits from those inventions. They still get those life-saving drugs. And that’s what’s going to happen here, too. This is real. The benefits of society from AI are going to be gigantic.
Tesla (TSLA) made headlines, with record EV deliveries reported in Q3 and as CEO Elon Musk’s post on X, which urged followers to cancel their Netflix (NFLX) subscriptions, stirred buzz.
Additionally, Alibaba (BABA) continued its gains, rallying on AI and Robinhood’s (HOOD) stock jumped 22% this week.
Gold continued to soar, setting new records, while Oil slipped 7.8% this week amid slow global demand and signs of rising OPEC+ supply.
Major Stock Movers
Nvidia tops the AI race
Nvidia (NVDA) , the GPU chipmaker, entered the $4.5 trillion club this week, with its stock up 5.3% over the same period.
More Nvidia:
- Analysts revamp Nvidia stock outlook on its investment in Intel
- Nvidia suffers a major blow from China
- Nvidia spending billions to spread its AI dominance
Analysts at Cantor Fitzgerald believe this has solidified Nvidia’s position as the de facto AI infrastructure company, quarterbacking the AI industry’s buildout, which is currently in its infancy, as reported at TheFly.
Despite its ascent, it faces a roadblock in its multi-billion-dollar deal with the UAE that was announced in May.
According to the agreement, Nvidia would send several hundred thousand AI chips in exchange for the UAE’s investment in the US. However, according to a report from The Wall Street Journal, even after five months, the US government has not authorized the chips.
Electronic Arts to go private, stock soars
Known for its video games, such as FIFA, Madden NFL, and Battlefield, the stock of digital game company Electronic Arts (EA) soared 3.8% this week and recorded a 19.4% gain for the month.
Related: Electronic Arts announces major deal as FIFA 26 hits the market
The stock moved sharply after a $55 billion take-private deal by Silver Lake, Jared Kushner’s Affinity Partners and Saudi Arabia’s Public Investment Fund.
EA shareholders will receive $210 per share in cash, representing an approximately 25% premium over the company’s current trading levels. The transaction, expected to be finalized in 2027, should not face regulatory hurdles, analysts say.
Despite the known interest, analysts are downgrading it, citing low expectations for a bidding war.
Eric Handler, an analyst at Roth Capital, downgraded Electronic Arts to Neutral from Buy and raised the price target to $210, the acquisition price, from $185. The firm does not expect any regulatory problems.
TD Cowen also downgraded the firm to Hold from Buy with a $210 price target.
Analysts raise Intel’s price target
Intel (INTC) stock recorded a 3.8% gain this week and an astounding 49% increase this month.
The firm has been the center of several headline-making moves in the past month, and the stock’s resurgence is driven by government support and strategic partnerships.
Nvidia agreed to a $5 billion investment in Intel’s common stock. Intel will also manufacture custom x86 CPUs for Nvidia’s data center AI infrastructure.
Related: Taiwan Semiconductor sends crucial message on Intel deal
Additionally, the U.S. government has a 9.9% equity stake in Intel, acquired via an $8.9 billion investment. The firm has also secured a $2 billion commitment from SoftBank to renew investor confidence.
Such strategic partnerships have boosted analysts’ confidence, with Deutsche Bank raising the firm’s price target to $30 from $23 and keeping a Hold rating. Analysts believe that Intel “continues to exist in a period of high investment” for its product roadmap and is on an “aggressive pursuit” to strengthen its balance sheet.
Some reports suggest that Intel is in early talks with its rival, AMD, to become a foundry for its chips; however, no official statement has been released.
